The Public Authority for SME Development (Riyada) has reaffirmed its pledge to ensure that Omani small and medium enterprises (SMEs) get funding support ranging from RO 15,000 to RO 250,000 against flexible repayment terms. It said in posts on its social media platforms that repayment periods can range up to 10 years, while administration fees are limited to a modest 2 per cent.
The financing programmes of Riyada fall in five categories based on the nature of the SME business: In-Country Value creation; Financing of industrial and service projects; Financing of working capital against fixed assets; Financing of incubated enterprises and business accelerators; and Financing of craft products, household functions, productivity, street vendors and mobile business activities.
In Country Value creation: This programme is dedicated to the financing of various business opportunities as partnerships between private sector institutions and companies that contribute to the empowerment of SMEs, localisation of industries or services by creating business opportunities for small entrepreneurs to provide services and goods related to the former’s production inputs.
Funding to the tune of RO 250,000 can be provided under this programme, subject to the decision of the competent committee. The Committee may require a percentage of the applicant's contribution to the project of no more than about 10 per cent of investment cost.
Financing of industrial and service projects: This programme covers financing of industrial and manufacturing projects, as well as service ventures, spanning commercial concessions, mining, logistics industries and tourism projects, agricultural and fish ventures, as well as those who want to expand existing projects.
Target segments include tourism, mining, commercial concession projects, and agricultural and fish projects. Financing reaches RO 250,000 or as decided by the competent committee.
Financing working capital and fixed assets: This programme assists SMEs in covering their daily operating costs towards, for example, the purchase of raw materials, semi-manufactured commodities or goods, stores and spare parts, salaries and wages, transportation expenses and other costs, in order to maintain the continuity of operations. Funding reaches RO 100,000 (or as decided by the competent panel).
Financing of incubated enterprises and business accelerators: This programme is dedicated to financing projects in the incubation phase and institutions related to the establishment and operation of business incubators and accelerators in order to facilitate their establishment on on the ground.
Target institutions include operators of incubators and business accelerators operating in the field of technology, innovation and the 4th Industrial Revolution, IT security, food, services, logistics, creative industries and consulting. Funding reaches RO 70,000.
Financing of craft products, household chores, productivity, street vendors and mobile business activities: This cover funding for craft projects, domestic work and productivity entrepreneurship, street vendors and mobile businesses, creative industries, entrepreneurship and individual professions and food trucks. Funding reaches RO 15,000.